The relationship between effective feedback and customer satisfaction

The relationship between effective feedback and customer satisfaction Executive Summary The following paper is a thought experiment, a work in progress that is unfolding as I observe today’s dynamic industries struggle to exploit multiple avenues to respond to customer complains. The objective of this study is to evaluate the effects of feedback system as one of the mechanism that supports functional element of organizational climate.Advertising We will write a custom assessment sample on The relationship between effective feedback and customer satisfaction specifically for you for only $16.05 $11/page Learn More The study methodology uses a trail group consisting of 35 members from the United States, Philadelphia region dispersed across a variety of demographic location and environments to determine how companies A, B and C quickly respond to their complains. The trial attempted to measure how fast companies A,B, C effectiveness responded to customers’ complains in relation to their defective devices in service industry perspective, and to evaluate the collective processes and outcomes. To effectively measure feedback system performance and satisfaction, the study uses variables that included technical-customer support, action orientation, phone-based technical support and information exchange. Changes in subject cognition were assessed using a series of conceptual model to measure reliability of the results obtained. Results of this study did however demonstrate that companies that engaged in feedback system and actively involved in strategic activities that requires introduction of innovative products and outreach program that mitigate customer problems before they occur reported high returns. Our conclusive results reveal that all the variables that related to feedback system positively linked to customer satisfaction. This study provides evidence of a relationship between effective feedback system in relation to solving customers’ complains and customer satisfaction. Introductio n Feedback system remains to be the most significant factor of organisational climate in resolving customer complains. For example, majority of computer companies in the United States continued to expand their products through implementation of effective and up to date feedback system.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Since many companies are thriving to survive through the competitive markets, many new and efficient products are such as iPod, Mac, iPhone are being introduced to the markets everyday. These products are reported to be widely successful due to the organisations’ communication system. This requires the organisation to implement effective feedback system with eminent good customer support that quickly responds to customers complains (Kaplan, 2006). The three companies assessment results present us an investigative framework to examine extend to which service firm utilises customer satisfaction data obtained from formal feedback mechanism. The essay further explores the effectiveness of feedback system using a questionnaire methodology to find out the relationship between overall feedback and customer satisfaction in computer companies in the United States (Fred, 2001): Fox, 2004). Literature Review Feedback system Lately, the three companies have been using feedback system for paying out customers with defective machines. For example, one of the Company’s products â€Å"iMac† was widely reported for to be giving clients problems and the company responded by giving 15% refund bonuses to all faulty 27 inch iMac in the UK and was also reported to extend $300 apologies to all its aggrieved customers in the US. In resolving the issue, the company responded quickly by offering free repairs to all the affected machines and launched a support page where it described how minor problems could be resolved and the re sulting warranty extension for each affected machine. The company also reimbursed customers who used their own money to repair the faulty machines and advised them take their drives to official company repair channels (Moore Knight, 2010; O’Reilly Anderson, 1980). Technical Customer Support The three service companies in our investigative analysis ranged top in customer satisfaction with phone-based technical support, communication, face-to-face communication, email communication, and information exchange in the American Consumer Satisfaction index (ASCI) in the second quarter of 2009. These companies were credited for offering the best technical customer satisfaction service within the Personal Computers category with a base score of 77 on a 100 point scale and earned 83 points in the second quarter of 2006. Business analysts have argued that the companies’ ability to focus on product innovation and customer satisfaction has won the company loyal customers compared to other PC vendors. Quality of customer service is always the determining factor for success of any company and not its products, and the three companies for this case have gained tremendously from such strategy. Van Amburg, the managing director of the American Customer Satisfaction Index (ACSI) argues that customers from other service providers were very frustrated with company’s customer service despite the quality of its PC hence loss of loyal customers and the services continued to deteriorate as years went by (Moore Knight 2010; Keizer 2009; Szmigin, 2003).Advertising We will write a custom assessment sample on The relationship between effective feedback and customer satisfaction specifically for you for only $16.05 $11/page Learn More In ensuring quality satisfaction in information collection, the companies launched Consumer Privacy Policy that ensures the collection, use and disclosure of personal information regarding customer issues are k ept at optimum security. The company pledges to safeguard personal information collected when visiting the company’s website, purchase of products and services and when a customer calls the sales team or support associates. Personal information collected here is aimed at helping the company deliver higher customer service and provide convenient access to company’s products and services (Apple, 2010; Levitan, 2004; Prasaad, 2009). The companies were reported to collect personal information in various occasions such as 1). Phone conversations with customer service representative and for this case, customer’s complains regarding downloading software updates or purchasing products may be collected 2). When customers interact with a service provider, information such as names, phone number, mailing address may be collected 3). Personal information may also be collected for market research purposes for example a client may be asked how often their use their computer a nd where they use it at. 4). Information regarding faulty devices was also collected on company’s website, iTune stores and MobileMe stores. The company then uses the data improve products and determine how best to provide useful information (Apple, 2010; Hewlett-Packard Development Company, 2010). The companies were said to partner with other service vendors such as MobileMe and iTunes stores to help in collection of information by requiring customers to customer’s to create an â€Å"phone company ID† before purchase of products. The ID is strategy is designed to help customers have easier access to web services and saves them time since they don’t have to give their personal information when requesting for services. The procedure requires creation of personal profiles by adding the name, phone number, email address or credit card number together with a suitable password that will be used to access the profile. Once the signing up procedure is completed, the customer is allocated personal ID and a password that the system generates automatically. Therefore next time the customer enters the website to re-purchases products is welcomed by personal greetings by mentioning his name and is able to access up to date information regarding the product purchased which can be used wherever the client goes (Apple, 2010).Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Action Orientation Companies are increasing exposed to intense pressure to deliver and better their feedback system. The intense competition requires companies to employ full array of management skills, ranging from managing people to communication. The end results are then used for analysis to help managers polish their skills. Here, action orientation packages, strategies and tools and timely guidelines are implemented to help managers and public relation representatives improve on their skills (Harvard Business Review, 2004; Purde, 2008). Phone-Based Technical Support The three companies were ranked among the best service providers in customer satisfaction with phone-based technical support hence the reason for using their data for analysis. Telephone conversations have always been regarded as traditional feedback system tools that improve customer loyalty. Due to the increased competition in service industries, economic pressures continue to squeeze these companies to ensure cus tomer satisfaction has reached peak point. Since majority of customer service professionals engage most of their time resolving customers’ issues and problems rather than engaging in proactive customer support, Levitan (2004) proposes the companies to try and reach the customer before they become frustrated and dissatisfied with automated calls. In addition, companies are required to be more involved in strategic strategies that involve introduction of innovative products and outreach program that mitigate customer problems before they occur (Herington Jacquot, 2005; Galindo et al, 2009, p.2839; Bettman, 2005). Information Exchange Cookies These companies admit to using cookies on its website as a strategy of keeping statistics on what parts of the websites are most hit and how much time clients spend on the website for purposes of product improvement. Secondly, cookies help in tracking the effectiveness of online advertising and for studying online traffic patterns. Thirdly , when personal details like the IP address is tracked, cookies may be used to customise customers’ experiences by offering services that can be found within the client’s location. For example, when a customer visits the sales website, support representatives lets the visitor register their name by signing up so that they can be referred by name next time they visit the website and even offered the opportunity to choose the country and language they wish to shop in hence increasing their online experience (Apple, 2010). Information collected Internet from log flies such as Protocal address is used for market surveys and indirect marketing purposes. Email is also considered as an effective marketing strategy if used appropriately. These companies for this case send emails to clients with â€Å"click-through URL† that links customers to the company’s products when clicked through. When the customer links through various links, cookies enable the company det ermine particular group’s interest and the effectiveness of customer’s feedback system (Apple, 2010; Dell, 2010). Pixel Tags Pixel tags are embedded graphics designed to provide reports on customer activities which help companies improve their services, keep track opened emails to avoid future spamming and keep customers up to date with software downloads and new company products (Apple, 2010). Publicly displayed information is public The three companies in our analysis used public information posted in chat rooms and bulletin boards as a feedback mechanism to improve their services, however, it claims to hold no responsibility for any misuse of such information by third parties. In a statement, Apple (2010) states that companies may help us process information, extend credit, fulfil customer orders, deliver products to you, manage and enhance customer data, provide customer service, assess your interest in our products and services, or conduct customer research or sat isfaction surveys (online). The companies are therefore delegated the responsibility of ensuring clients’ personal information kept in accordance to company’s policies of confidentiality (Apple, 2010). Methodology This study involved a secondary analysis of an existing data set developed from questionnaires of members in the Philadelphia region. The trail group consisted of 35 members from three computer companies across United States were dispersed across a variety of demographic location and environments to determine how fast companies A, B and C responded to their technical complains in relation their satisfaction. The trial attempted to measure the effectiveness of feedback system, and to evaluate the collective process and outcomes of customer satisfaction using conceptual model. Consumers participated in the surveys by calling, emailing and information exchange to reach the company’s customer support. Using survey data and call statistics from the three se rvice companies, the customers were required to complete a survey about their support experience and then pass the information to three interviewers. The interviewers were trained to the effective data collection methods of collecting timely and actionable feedback system that will positively impact customer service quality. The research relied on quantitative methods that focused on ascertaining feedback system tools employed by companies in their every day interactions. The independent variable in this study was feedback intervention as a key strategy to resolving customer complains. Table 1 provides more detailed analysis of participants’ feedback in relation to services they received from the three service companies. During the interview, each participant identified six functional deficits that most affected the companies’ functional performance in resolving their problems. The question was phrased as; â€Å"To what extent do you agree or disagree with the followi ng statements according to your computer service provider?† Participants rescored each problem area during the test administrations as indicated in table 1. The research uses quantitative tools that involve Statistical Package for Social Sciences in recording actual evidence and records. The quantitative technique used here will confirm the hypothesis and the relationship between the chosen variables. Questionnaires were chosen as our quantitative tool to collect data. It contained six multiple choice questions. The first questions were chosen on the three companies data based on products and services. The six questionnaire questions were aimed at measuring customer’s perception regarding their experiences with their service provider companies and the results were recorded using a five-point scale that ranged from 1 for â€Å"strongly disagree† to 5 for â€Å"strongly agree†. TABLE 1: Frequency of performance deficit from companies A, B and C performance m easures (N=35) Categories derived from deficits identified by Participants Frequency Percentages Strongly Disagree Disagree Neither Agree Strongly Agree Do I get through customer representatives by phone 5 25 1 2 3 4 5 Does companies A,B,C follow through the problems 1 5 1 2 3 4 5 Does your company offer repair services for free 3 15 2 2 3 4 5 Does the company performing routine activities of faulty devices 1 5 1 2 3 4 5 Do I feel supported when I have technical problems 5 25 1 2 3 4 5 Does the company remember customer problems and faces 6 30 1 2 3 4 5 Participants Thirty five customers aged 18 to 55 consisting of both male and female from Philadelphia region were voluntarily recruited for the study. All participants were required to have purchased the company’s products and used them for a period of not less than one year. Participants were unaware of the experimental hypothesis before the experiment. To participate, volunteers needed to have forwarded a t echnical problem to the customer support department and to have lived in the community for the same period. Conceptual Framework The research builds on conceptual framework to focus on in our methodology and data analysis. The results however show a strong relationship between effective feedback system and customer satisfaction in companies. The study proposed three hypotheses which included; Action orientation is positively related to feedback system Technical-customer support is positively related to feedback system Information exchange is positively related to feedback system Phone-based support is positively related to feedback system Data Analysis and Findings Companies spend huge portions of their earnings to manage their corporate image. And in many cases, the image of how people perceive the company in terms of customer satisfaction is given top priority. Customer service has of lately been considered as â€Å"industry buzzword† and companies that don’t give their customers quality services are starting to loose customer every fortnight. It’s actually difficult to measure customer satisfaction if companies are instead hiring public relation representatives to cover up their problems. To measure the feedback system in relations to customer satisfaction, the research sifted through personal surveys and previous studies as well as real life experiences of customers, to come up three best service companies and 10 sample questionnaires for customer service (Inside CRM Editors, 2010, p.1). Data of this survey were analysed using the Statistical Package for Social Sciences (SPSS) software (version 13). Mean, medium, mode, standard deviation and variance were used to test the hypothesis to determine the relationship between effective feedback system and customer satisfaction and its variables (technical customer support, phone based technical support, action orientation and information exchange) in computer companies. Feedback Syste m Technical Customer Support Phone-based Technical Support Action orientation Information Exchange N Valid 35 35 35 35 35 Missing 0 0 0 0 0 Mean 24.28 4.83 4.01 6.02 5.76 Median 26.06 3 4 6 4 Mode 31a 5 5 7 5 Std. Deviation 5.401 .796 3.321 4.650 2.092 Variance 45.398 .005 1.181 1.008 1.80 Minimum 3 4 4 4 4 Maximum 36 3 5 5 5 The summary shows that there are 35 valid responses entered in the software (n=35). According to Moore Knight (2010), customers found it easier to reach agent in 2009 than it was in the previous year. On phone conversations, customers reported satisfaction as there were less connectivity problems with automated calls compared to the previous years. These company changes positively related to customer satisfaction since there was an increase of 9% with agent services and a 17% improvement in customer satisfaction in automated calls. The rising levels of customer satisfaction in these companies demonstrated the correlation between effective feedback system and service customer satisfaction. When complex consumer electronics become defective, customer often need fast, confident, effective and friendly support (Lumbue, 2008). Discussion and Recommendation One of the companies with defective software products was reported to extended its repair period for the affected Macs three years from the date of purchase, which is indeed a very good customer service any company could offer its clients since many extends up to the warrant period. This strategy will instantly regain the trust of iPhone users hence more sales of their products. The companies should also look into giving away unlimited online storage, this way clients will be able to take advantage of MobileMe services and the cost of providing this support will come down. For instance if the company gave customers free storage amount of 30GB and maybe charge a reasonable fee of $5 a year, in the long run the company would be benefiting from low cost of providing suppor t. Lastly, the company should open up user feedback and blogging on MobileMe devices so that users could make suggestions for improvements. To improve the quality of telephone conversations, companies should try and reach customers before they become frustrated and dissatisfied with automated calls. Companies are required to be more involved in strategic strategies that involve introduction of innovative products and outreach program that mitigate customer problems before they occur (Etherington, 2010; Purdue, 2008). Conclusion The study proves that companies must understand the importance of feedback system and how to leads to customer satisfaction. Other forms of data collection that includes technical customer support, phone based technical support, action orientation and information exchanges are all effective feedback systems which must be utilized to reach the overall organisational success. The study demonstrated the ability of simple mechanisms such as effective feedback sys tem affect customer satisfaction contrary to the past scholars concerns on history, ethnography, or ritual studies. Quality of customer service is always the determining factor for success of any company and not its products, and the three companies for this case have gained tremendously from such strategy. Due to the increased competition in service industries, economic downturns continue to pressure companies to ensure customer satisfaction reaches peak point. Since majority of customer service professionals engage most of their time resolving customers’ issues and problems rather than engaging in proactive customer support, companies should try and reach customers before they become frustrated and dissatisfied with automated calls. References Apple.(2010). Apple Customer Privacy Policy. Available at; apple.com/legal/privacy/. Acessed april 14, 2010 Bettman. R. (2005). Next deal. Psychology and Marketing, June. Dell. (2010). Service Information. Available at; http://support .dell.com/support/topics/global.aspx/support/my_systems_info/details. Etherington, D. (2010). 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